Difference in the BOM Qty during Standard Cost estimation

Hi SAP Experts,
We are trying to estimate the cost for the material variant, but the BOM exploded during the cost estimation, the quantity differs slightly with the BOM exploded during CU50.
What might be the reasons for difference.
Please give your valuable Inputs.
Thanks
Best Regards
Siva

Dear Mr.Kumar,
For any material in the material master , for Price
Control indicator in Accounting 1 View we can either
maintain S or V.
For In House Manufactured materials we maintain S
(Standard price) & for Sub contracted or bought out
items we maintain V(Moving Average price).
During cost roll up & release as far I know we cant
split like 70 & 30% and we can do the costing.
So either you have to use the moving average price for
both inhouse & bought out.
Because 1 material cant have both standard price &
Moving Average price.
Because bought out item's doesnot have standard price.
If your vendor is ready to give the material(Finished
product) using the same amount which you spend for
producing inhouse,then no issue,you can use
standard price.But Practically it doesn't occur.
I hope this will help to clear your doubt.
If useful reward points.
Regards
Mangal
Message was edited by:
Mangalraj

Similar Messages

Difference in the Material variant BOM Qty during Standard Cost estimation

Hi SAP Experts,
We are trying to estimate the cost for the material variant, but the BOM exploded
during the cost estimation, the quantity differs slightly with the BOM exploded
during CU50.
What might be the reasons for difference.
Please give your valuable Inputs.
Thanks
Best Regards
Siva

Dear Mr.Kumar,
For any material in the material master , for Price
Control indicator in Accounting 1 View we can either
maintain S or V.
For In House Manufactured materials we maintain S
(Standard price) & for Sub contracted or bought out
items we maintain V(Moving Average price).
During cost roll up & release as far I know we cant
split like 70 & 30% and we can do the costing.
So either you have to use the moving average price for
both inhouse & bought out.
Because 1 material cant have both standard price &
Moving Average price.
Because bought out item's doesnot have standard price.
If your vendor is ready to give the material(Finished
product) using the same amount which you spend for
producing inhouse,then no issue,you can use
standard price.But Practically it doesn't occur.
I hope this will help to clear your doubt.
If useful reward points.
Regards
Mangal
Message was edited by:
Mangalraj

The split (i.e., 70% & 30%)during standard cost estimation (CK11)

Dear All,
A component(Y) in the BOM of X is manufactured in house (70%) & procured directly from vendor (30%).
Can we have the split (i.e., 70% & 30%)during standard cost estimation (CK11)
Based on the cost we deside to make or buy.
Please explain the procedural steps in arriving at this solution.
Regards,
Kumar

Dear Mr.Kumar,
For any material in the material master , for Price
Control indicator in Accounting 1 View we can either
maintain S or V.
For In House Manufactured materials we maintain S
(Standard price) & for Sub contracted or bought out
items we maintain V(Moving Average price).
During cost roll up & release as far I know we cant
split like 70 & 30% and we can do the costing.
So either you have to use the moving average price for
both inhouse & bought out.
Because 1 material cant have both standard price &
Moving Average price.
Because bought out item's doesnot have standard price.
If your vendor is ready to give the material(Finished
product) using the same amount which you spend for
producing inhouse,then no issue,you can use
standard price.But Practically it doesn't occur.
I hope this will help to clear your doubt.
If useful reward points.
Regards
Mangal
Message was edited by:
Mangalraj

Routing during Standard Cost Estimation

Dear all,
We are executing the Standard Costing using t_code CK11N for a finished product,,,for the same we have maintained BOM, but no routing has been created,,
so, during execution of Standard Costing system is prompting a msg: No routing could be determined for material AUBF0018 (green indicator not an error msg), so if we try save the costing a success msg: "The cost estimate is being save" is being prompted,, but the standard cost did not get updated in material master.
what would be the cause? Is routing essential prior to standard cost execution,,, as our Client says that without routing also they could excute/update the standard cost earlier,,, why this problem is occuring? is there any thing need to be defined in customization for routing not to consider during standard cost estimation,
Please help us in this regard,
thanks
Kumar

Dear Urendra,
1.After executing the costing run with quantity structure in CK11N and saving the datas,it only saves the cost estimate.
2.Marking and release should be done using CK24.First the same has to be marked and then using the same T Code you have to
release it,only after this steps it get's updated in the material master.
3.In your case you have done only CK11N and not CK24.
4.Moreover the routing get's picked automatically by the costing variant that you use,in your case even though there is no
routing,the systems throws the message before saving,but the status will be saved with errors.
Check with this and revert back.
Regards
Mangalraj.S

Kindly Explain the Process of Releasing Standard Cost

Hello SAP Gurus....,
Kindly Explain the Process of Releasing Standard Cost..
Thank you very much!

Hi,
Once you save cost estimate without error, then you need to run ck24 .
Check marking allowance is given for company code for current period.
then first mark the material/s,plant/s to be mark & execute in test . it will show number of materials sucessfully marked. & remove test run & execute.
Then release cost by clickin on release button for same selection.
regards,
Deepak

Standard cost estimation after goods movement when material ledger is activ

Hi!
our client is activated material ledger, for some materials standard cost estimation is done till marking but not released.
goods movements have been posted for those materials.
Now system is not allowing to release the standar price for those material in the current period, as material ledger expects same price for entrie period.
what is the alternative way to update the standard price for those materials ( with out reversing the goods movements).
regs,
ramesh

Hi Ramesh,
When you are using Material Ledger, after goods movemnets for materials, no need to change the standard cost estimate as Actual costing run will take care to derive the PUP price.
If there is no standard cost estimation release for sold materials (e.g.FG), you will get an error message duirng the billing document release to accounting. To aviod this error, if you are using split valuation (valuation types) and mixing ratios (CK91N & CK94), try with the below steps:
Create a new valuation type for the same material
Crate CK11N & CK94,
Run CK11N
Run CK24.
Then release the billing document.
Let me know if you need more details.
Thanks & Regards,
ADI

Standard Cost Estimation Functionality removal from S.O.

Hi Friends,
I would like to know, is in SAP system there is an option to remove funcionality of auto Stadard cost Estimation i.e. we don't like to make Standard cost Estimation at the time of Sales order creation.
Can you Please tell me about this feature.
Rgds, Krishan Raheja.

Hi,
I am talking about the Cost Estimation happens, as it shows the cost via menu path---> Extra --> Costing. Further, the system will make the accounting entries for consumptions/Receipt w.r.t. to cost calculated vai this estimation. VPRS condition is not having the same prices as calculated in Costing. Further, the stock will also remain with same prices as calculated in price.
Can you please suggest, if there is any option, so that we can omit this costing calculation and system make consumption/receipt entries with the values in material master.
Rgds / Krishan Raheja.

Difference in Price per unit and Standard cost between COPA and PCA

Hi
I did a comparison between COPA and PCA for January. For few products,there is a difference in the Standard cost and PPU between the two reports(product wise). What might possibly be the reason for the difference. And how to analyze the root cause of this difference.
Thanks
Jaswanth

Hi
By PPU - Do you mean PUP i.e. Per Unit Price of Material Ledger??
If yes, then you are not comparing apple to apple.. Std cost is bound to be diff than actual cost
br, Ajay M

Whats the difference between the combo update vs. standard update?

I'm curious to know which update to use. So what is the difference between the two?
Thank you

The standard (called a 'delta' update) can be applied to one version back, e.g. the 10.5.7 delta update works only if you are running 10.5.6. The combo update will update from any previous version of the main OS release, e.g. the 10.5.7 combo update works if you are running 10.5.0 through 10.5.6 (but not, for example, 10.4.11).
The combo update can also be reapplied as a troubleshooting step (i.e. if you are having problems with 10.5.7, you can download and run the 10.5.7 combo updater).
If you use Software Update, it will apply the appropriate update (the delta if you are running the immediately previous version, the combo if you are >1 version back).

Standard cost estimation along with departmental transfer

Hi Friends,
I will like to have the overview of the
1. departmental transfer price.
2. CKM3N (i.e. material price analysis, what is the difference between activation and non activation of it.)
3. KB21N (Direct activity allocation)
What are their connection in estimating the standard price.

Hi Friend
1) Transfer prices
Transfer price is a price used to valuate the transfer of goods and service between profits centers. Precondition is that you have Material Ledger active
Legal View = Company Code
                                             Parallel Valuation Approach
                                            /                       |                     \
                                    Group                Legal               Profit Center
- If currency type 32, transfer price is active
- Internal moves are always valued at procurement price
2) CKM3N
Before you activate Material Ledger you would have the option of S or V Price control, however when you activate ML you   can value Materials at "periodic unit price", this price takes into account all the transactions of a material in a period(i.e goods movements, procurement etc..) and then at the end of the period revaluates the Material with a new periodic unit price.
3) KB21N
Allocation in general means taking cost accumulated on one object and allocating it to another, usually a cost center.
Direct Activity Allocation is where you use transactions KB21 (KB21N) to manually allocation costs from the cost collector (e.g. Order) to a specific Cost Center. The activities can come from PS or from CATS Activity Recording. These activities are assigned to an order/wbs/network. And from there via the transaction KB21/KB21N they are allocated to a specific cost center.
I hope the above information helps.
Regards,
Declan

Standard Cost Estimation

Dear All,
Yesterday we taken the costing run for all 5 plants, in this 5 plants we have problem with 3rd plant.
During costing result the price is Rs. 69 Rs.
However it is release with Rs. 2.8 only in Material master
Previous price in Material Master is Rs. 12,500/-
But in Material master shown Rs. 500/-.
So, Any one could you guide me how can i solve this problem.....
Thanks for Advance....
Thanks & Regards,
Chandrababu.B

Dear Adi,
Exactly your right.....,
The Costing Lot Size = 25 in Material Master
Before Marking = 69.97
After Release = 2.80
Here the calculation is 69.97/25 = 2.80
As per your suggestion i checked it.....
Thanks a lot Adi....
Thanks & Regards,
Chandrababu.B

Standard cost error..

Hi Friends
We have a material with diffrent valuation type per say MFG and procurment etc. During standard costing I found that standard cost is updated only at header level not at child material level, which cause of a loss of the difference cost.
Stock value is based on the individual valuation type i.e. is correct. But the problem in valuation type -MFG which having price control "S" having rate which was uploaded at the beginning of the SAP live . Now the standard cost of material has increased The stock which we are having in plant, evaluated at lower rate where it is consuming all raw materials at inflated/higher price. Why does its happening?
Please help us in solving this.

Hi,
You have to change the standard price, whenever price increase.
t-code is MR21.
Sudarsan S R

SAP allows release of Standard Cost for Material with Moving Average Price

Hi
We set our Raw Material to use Moving Average Price (V) and price determination 2 (single level). And we activated material ledger.
During mass calculation of standard cost (CK40N), If user accidentally forgot to restrict the Raw Material for being included in calculation, the system calculate standard cost anyway, even though I set it as Moving Average Price. And user is able to release it too without any problem.
Why the system does not restrict it? By giving error maybe. Although as for now I can not find the wrong effect from releasing standard cost for MAP material, by your experience, is there any side effect that I should be aware of?
Thanks

CK40n is mass release of all materials. The release is not dependent on price indicator of the material in the master. It will calculate standard cost of all the materials.
Releasing standard cost estimate of raw materials does not have any side effect as long your calculation is based on moving average price.
Regards
Divraj

Logic for taking Standard cost of destination instead of dispatching locati

Need your input regarding Intra-Company STO.
As per STD SAP Process,the price maintained at Supplying Plant will be taken when we do Goods Receipt at receiving plant.
Example
Price at Supplying Plant = Rs 10
Price at Receiving Plant = Rs 12
GRN Value @10 Rs
Is there any possibility to maintain the Goods receipt Value as receiving plant price
The Client has maintaining Standard Cost at both Receiving and Supplying Plant.
They do not want to maintain the price as Moving Average Price.
Awaiting for your reply.

you will not have a price in the order if it is an INTRAcompany stock transfer.
from docu MM - Material Price Change that can be downloaded:
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMIVMVAL/MMIVMVAL.pdf
The value of the stock transfer is posted upon withdrawal of the material. The material master
records change as follows:
In the issuing plant, the stock is reduced by the quantity transferred, and the value is
reduced accordingly:
Transfer posting value = transfer posting quantity x price in issuing plant
In the receiving plant, the stock is increased by the quantity transferred, and the value is
increased in accordance with the price control defined for the material.
If the price in the receiving plant differs from that in the issuing plant, the transfer posting results
in price differences. These differences are posted to the stock account (in the case of price
control V) or to an u201CExpense/income from stock transferu201D account (in the case of price control S),
depending on the type of price control defined in the receiving plant.

Report showing labor and machine time based on standard cost estimate

Hi Friends,
Ours is an Manufacturing organisation & we have a requirement of report showing machine and labor time as per part wise & cost center wise. We need to run the report before saving standard cost estimate [CK11N] in order to see the part wise or cost center wise discrepancies in machine and labor time. If any one could help in creating such report in SAP it will be of great help.
Regards,
Varsha

Hi Varsha,
you can jump from CK11N to a own report by
Menu Function 'Costs -> User Exit Display'
Cost Report 1 / 2 / 3
The own report can be implemented via (SMOD) enhancement SAPLXCKA
The report will be handed over the currently displayed in the program interface.
some example coding is provided for the exit.
compare SAP Note No. 71146
best regards, Udo

Difference in the BOM Qty during Standard Cost estimation

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